Singapore
Wired Daily
Page 2
This is a significant breakthrough for Keppel. FLNGV's are
massive projects and have so far been awarded to Korean
shipyards. We believe this award by Keppel underscores its
capability and track record - it has previously converted two of
Golar's Moss LNG carriers to Floating Storage and
Regasification units (FSRUs), one of which was the world's first
FSRU conversion. No change to our Buy call and S$12.65 TP
for Keppel.
Hyflux’s 3Q12 earnings fell short although margins have
improved. Hyflux has a strong bidding pipeline but it needs
more contracts wins to strengthen earnings visibility going
forward. FY12/13F earnings cut by 16%/17% on lower
margin assumptions. Maintain Hold on limited upside to lower
TP of S$1.39 (Prev S$ 1.45).
ARA Asset Management reported lower 3Q12 net profit y-o-y
due to one-off gains recorded last year. Potential REIT
acquisitions in 2013 could compensate for Dynasty REIT’s
disappointment. BUY maintained, TP S$1.70 (Prev S$ 1.72).
ARA’s stable, recurring and visible income business model is
especially attractive in this current uncertain economic
backdrop.
Cambridge Industrial Trust’s 3Q12 results represent 6
consecutive quarters of growth. CREIT has made cS$220m
acquisitions YTD, more expected to come. Maintain BUY, TP
S$0.71 (Prev S$ 0.67).
Global Logistic Properties is sponsoring the establishment of a
J-REIT through the sale of 30 of its 68 assets for JPY209b
(US$2.6b). This will boost fee income platform and recycle
capital. Maintain Buy.
OKP has secured S$39.8m contract to construct Seletar
Airport’s north-east aircraft parking apron, associated taxiways
and ancillary works. The project is scheduled to start now and
last till Dec 2014. With this new order, OKP has won S$125m
of orders to date. This is within our FY12F order win
expectations of S$137.4m. FY12F order book is now increased
to S$385.9m, lasting till 2014. Maintain Hold and TP: S$0.49.
AusGroup has secured fabrication, supply and installation
work with CSBP Limited for the prilling plant upgrade
associated with its ammonium nitrate expansion project. With
this contract award, AusGroup’s orderbook now stands at
AU$306m.
PEC has successfully clinched four new contracts worth
approximately S$30m in total from three existing clients. The
latest wins will boost PEC’s orderbook, which stood at
S$258m as at 30 June 2012, excluding maintenance projects.
The above contracts are expected to contribute to the group’s
earnings for FY Jun 2013.
China’s Purchasing Manager's Index (PMI) for the month of
October rose to 50.2 against 48.9 in September. It was the
first time the reading had crossed 50 since July and backed the
view that activity is gathering momentum in the world's
second biggest economy. Separately, HSBC also released its
PMI data which edged up to 49.5 points last month from 47.9
in September. The index published by the investment bank is
traditionally lower as it takes into account sentiment in China's
small and medium enterprises (SMEs), which are more exportoriented
and have less access to credit and government
support than state- owned enterprises.
US markets rebounded as the ISM manufacturing (actual 51.7,
consensus 51) and consumer confidence (actual 72.2,
consensus 73) data releases pleased investors. US October
employment data will be released tonight. Non-farm payrolls
consensus expectation is 125k while the unemployment rate is
seen edging a tat higher to 7.9%. Separately, China’s Oct
manufacturing PMI edged back to expansion territory of 50.2
from 49.8.
Share Buy-Back
Source: SGX Masnet
Company D.O.T. Buy /Sell No.of shares S$/shr
AEM Holdings Ltd 01-Nov-12 Share Buy-Back 1,393,000 0.0800
Viking Offshore and Marine Ltd 01-Nov-12 Share Buy-Back 27,000 0.1090
Hotung Investment Hldgs Ltd 30-Oct-12 Share Buy-Back 350,000 0.1490
GKE International Limited 29-Oct-12 Share Buy-Back 605,000 0.1568
United Intl Securities Ltd 29-Oct-12 Share Buy-Back 10,000 1.1500